Qantas 2014 Annual Report Download - page 79

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QANTAS ANNUAL REPORT 2014
Segment Performance Measure Basis of Preparation
External segment revenue External segment revenue is reported by operating segments as follows:
–Net passenger revenue is reported by the operating segment which operated the relevant flight or
provided the relevant service. For Qantas Airlines, where a multi-sector ticket covering international
and domestic travel is sold, the revenue is reported by Qantas Domestic and Qantas International on
a pro-rata basis using an industry standard allocation process.
–Net freight revenue includes air cargo and express freight revenue and is reported by the
QantasFreight operating segment.
–Frequent Flyer redemption revenue, marketing revenue, membership fees and other related revenue
is reported by the Qantas Loyalty operating segment.
–Other revenue is reported by the operating segment that earned the revenue.
Inter-segment revenue Inter-segment revenue for Qantas Domestic, Qantas International and Jetstar Group operating
segments primarily represents:
–Net passenger revenue arising from the redemption of frequent flyer points for Qantas Group flights
by Qantas Loyalty
–Net Freight revenue from the utilisation of Qantas Brands and Jetstar Group’s aircraft bellyspace
byQantas Freight
Inter-segment revenue for Qantas Loyalty primarily represents marketing revenue arising from the
issuance of frequent flyer points to Qantas Domestic, Qantas International and Jetstar Group.
Inter-segment revenue transactions, which are eliminated on consolidation, occur in the ordinary
course of business at prices that approximate market prices.
Qantas Loyalty does not derive net profit from inter-segment transactions relating to Frequent Flyer
point issuances and redemptions.
Share of net (loss)/profit of
investments accounted for
under the equity method
Share of net (loss)/profit of investments accounted for under the equity method is reported by the
operating segment which is accountable for the management of the investment. The share of net (loss)/
profit of investments accounted for under the equity method for Qantas Airlines’ investments has been
equally shared between Qantas Domestic and Qantas International.
Underlying EBITDAR The significant expenses impacting Underlying EBITDAR are as follows:
–Manpower and staff related costs are reported by the operating segment that utilises the manpower.
Where manpower supports both Qantas Domestic and Qantas International, costs are reported by
Qantas Domestic and Qantas International using an appropriate allocation methodology.
–Fuel expenditure is reported by the segment that consumes the fuel in its operations.
–Aircraft operating variable costs are reported by the segment that incurs these costs.
–All other expenditure is reported by the operating segment to which they are directly attributable
or, in the case of Qantas Airlines, between Qantas Domestic and Qantas International using an
appropriate allocation methodology. To apply this accounting policy, where necessary expenditure
isrecharged between operating segments as a cost recovery.
Depreciation and
amortisation
Qantas Domestic, Qantas International and Jetstar Group report depreciation expense for passenger
aircraft owned by the Qantas Group and flown by the segment.
Qantas Freight reports depreciation expense for freight aircraft owned by the Qantas Group.
Other depreciation and amortisation is reported by the segment that uses the related asset.
Non-cancellable aircraft
operating lease rentals
Qantas Domestic, Qantas International and Jetstar Group report non-cancellable aircraft operating
lease rentals for passenger aircraft externally leased by the Qantas Group and flown by the segment.
Qantas Freight reports non-cancellable aircraft operating lease rentals for freighter aircraft externally
leased by the Qantas Group.